Sure, if you work hard you make lots of money
but where is that money going?
lets take a closer look
all these numbers are are not accurate
some maybe higher or lower for you
but i dont think any of these numbers are grossly exaggerated
Lets say you do 2000 $20 cuts per season
thats $40,000-seems like a lot
not many people will get anywhere near that many cuts in a single season.
if the season is april til october and pinelands pays 2 times a month that is 14 15 day pay periods. lets do some math,
to get 2000 cuts you would have to do 143 cuts per 15 day pay period
thats roughly 10 cuts a day, if you work everyday for 7 months.
Now for the fun part- the cost of doing this
taxes after its all said and done-at tax time lets say uncle sam gets 10% of that hard earned 40k, thats 4k
you have a truck payment $250 a month-this payment is all year-not just during 7 month cutting season=3k. then we will need to add full coverage insurance $100 a month all year $1200
Maintenance on truck oil changes,tires, etc... $100 a month-7 months is $700
so far we have
labor cost- which you probably need to do that much and still be able to stand at 7 months and its probably just a good idea to have someone else around in case something happens
one employee at $9 an hour for 80 hours during a 2 week pay period equals$720
then you have to pay some taxes on this employee on top of the taxes the employee pays-lets say $100 per month.
labor is $720 times 14=10080+ the $700 employer(you the contractor)pays for employee in taxes. This is if you know someone that can live on 10k a year
-10780 labor and employers part of employee taxes for a year
That covers truck and labor
Now lets do equipment, just mowers
To do 2000 cuts in 7 months you will need 2 ,at the very least $7500 commercial mowers, thats $15000. Lets do it in low monthly payments
$300 a month for both mowers $3600-all year long payment.
Maint. on mowers $100 a month-blades, oil changes, air filters..
Thats $700 for the season
-4300 mowers and maint.
Gas for mowers and truck
Lets say you are in a big city where you can get 10 cuts a day without driving over 150 miles a day. Thats half a tank at a cost of $40 which equals $600 for a 15 day pay period-(THIS IS NOT HAPPENING FOR MOST CONTRACTORS)
Gas in mowers and weed eaters-lets say 6 gallons a day at $3.50 a gallon
$21 a day equals $315 for a 15 day pay period
-6405 for truck and equipmet gas during the season-unleaded gas not diesel
Now most preservation companies want you to have million dollar insurance
at $80 a month all year long $960
-960 million dollar business insurance
self employed health insurance-this is if you dont have a spouse that provides the insurance
lets say $400 a month all year long $4800
Who wants to save for retirement $5000 a year-which is on the low side
Home internet $50 a month times 12 months $600
cell phone with data package $70 a month times 12 months $840
-1440 home internet and cell phone
Starting to look like flippin burgers would be more profitable
and this is a list of some of the business cost associated with doing 2000 $20 cuts in 7 months
Hope you people dont have things like
Last edited by mlr; 05-06-2013 at 09:37 PM.